Print this page | Go back to previous topic
Forum nameFinancial Feast
Topic subjectRE: Refinancing home to use home equity to finance business?
Topic URLhttps://www.businessownersideacafe.com/forums/dcboard.php?az=show_topic&forum=105&topic_id=163&mesg_id=176
176, RE: Refinancing home to use home equity to finance business?
Posted by csk317, Thu Feb-22-07 06:24 PM
Having financed many people out of SBA loans, I can tell you SBA is not the best way to go. They are expensive and do require collateral.
If you have equity in your house, your best option to minimalize risk and get the money you need, is to take a fixed Interest Only 1st Trust Deed. You will know what your maximum payments are no matter what. Equity lines are okay, but you are going to pay a higher rate, and they are going to be adjustable. Take out all the money you will need on the first, and pay down what you don't use. Your payments will reflect the principal loan balance no matter what, you will be able to write off the interest on your taxes, and you are not leaving your butt floating in the breeze when inflation starts to affect interest rates. That would be my suggestion. There are also convertible equity lines that have interest only options, but again they are still higher interest rates. If you have any questions, feel free to email me. I would be happy to talk to you more about it, but starting a business should be about long term survival and short term cash flow. -chris
csk317@yahoo.com